Bill Would Eliminate Child Tax Credit for Many Low-Income Families in 2018

by Jessica Schieder, 8/4/2014

The Child Tax Credit (CTC) provides families as much as $1,000 per child in tax relief. This partially refundable credit, when combined with the Earned Income Tax Credit (EITC), lifted 5.3 million children out of poverty in 2012, helping to improve the lives of low-income working families.

Legislation (H.R. 4935) sponsored by Rep. Lynn Jenkins (R-KS) would permanently extend the credit to higher-income families (increasing the annual income eligibility cap for full benefits from $110,000 to $150,000). At the same time, it would allow the lower qualifying earnings level for working poor families, passed in 2009, to expire. Under the House proposal, a married couple with two children making $150,000 a year would receive $2,200 more than they currently receive under the CTC, while a single mother with two children working full-time at the minimum wage ($7.25 an hour) would lose a tax credit of $1,725. In other words, this legislation would increase the number of working Americans living in poverty and increase inequality.

One in five American children currently lives in poverty, and one in four children under age five lives below the poverty line in America. "Letting the Child Tax Credit improvement for low-income working families expire after 2017 will push 12 million people – including 6 million children – into or deeper into poverty," according to analysis of census data by the Center on Budget and Policy Priorities.

The following chart from Citizens for Tax Justice compares the House legislation (paired with allowing certain stimulus provisions to expire) and a plan from the White House to make permanent the improvements to the Child Tax Credit for working poor families. It examines the share of benefits that three different income groups would receive from each proposal:

The House proposal raises the earnings that lower-income families must have to access the Child Tax Credit from $3,000 to more than $10,000 and raises the cap for high-income families to receive the full credit from $110,000 to $150,000.

The president’s proposal would allow families making as little as $3,000 per year to continue to receive the credit and would not increase access to the credit for high-income families.

Although the House legislation is unlikely to be taken up in the Senate, the president has released a veto threat, criticizing the bill’s treatment of low-income working families:

After 2017, H.R. 4935 would effectively eliminate the Child Tax Credit for 5 million families, while cutting it for 6 million more.

TAKE AWAY FROM USA BORN KIDS AND GIVE IT TO THE ILLEGAL BORN KIDS! OUR NATION IS SLOWLY BEING DESTROYED BY THE SAME PEOPLE THAT ARE RUNNING IT INTO THE SEWER!! AND THATS OUR OWN CONGRESS AND SENATE IN CASE YOU DON'T KNOW IT BY NOW! OUR FUTURE ARE ALL OUR KIDS AND GRANDKIDS, AND IF WE STARVE THEM AND NOT EDUCATE THEM WELL WE ARE DOOMED!!!

Submitted by Anonymous (not verified) on 11/20/14

This is VERY SAD!!! Why would you take away the Child Tax Credit from the poor and give more to the rich? What since does that make? And the only way you can receive the credit if you are making a big whooping 150K -OR- 3k per year.

Submitted by Mary in Louisiana (not verified) on 12/08/14

THOSE OF YOU WHO VOTED THE RUPUBLICANS BACK IN, I HOPE YOU ARE HAPPY.
I NEEDED THIS MONEY FOR TUITION FOR MY SON. WHO I ADOPTED BECAUSE HIS MOTHER AND FATHER ARE IN PRISON. I MAKE 32,000. A YEAR AND I PAY $6000.00 A YEAR IN CHILDCARE AND PRESCHOOL.
THOSE OF YOU SNAPPING OUT OF YOUR BRAINWASHING BY THE REPUBLICANS, IT'S TOO LATE, THEY ARE ON A ROLL AND BEFORE WE KNOW IT ALL THEY'RE RICH BUDDYS WILL HAVE ALL THE MONEY, GOOD JOBS AND BENEFITS.
STILL UPSET ABOUT OBAMACARE??????????????????????????????????????????????????????
YOU IDIOTS

Submitted by Anonymous (not verified) on 12/09/14

This along with many article opposing this bill are misleading and in my opinion completely inaccurate. You blame the bill but go against your own words. Here is a piece of the story above:
Legislation (H.R. 4935) sponsored by Rep. Lynn Jenkins (R-KS) would permanently extend the credit to higher-income families (increasing the annual income eligibility cap for full benefits from $110,000 to $150,000). At the same time, it would allow the lower qualifying earnings level for working poor families, passed in 2009, to expire.
Here is your Title: Bill Would Eliminate Child Tax Credit for Many Low-Income Families in 2018
Read what you wrote, really read it. I challenge you to prove what I wrote below to be untrue:
The last 2 words of the piece of your story above, "TO EXPIRE". Your Title: "Bill would eliminate child tax credit for many low-income families". FALSE
As of today, under current law as you write in the article. the low-income tax credits are set to expire in 2018. You know what. HR 4935 is not passed today and you know what if it doesn't pass the low-income tax credit is STILL going to expire. Don't confuse the topics. Just cause a bill doesn't SAVE something doesn't mean the bill eliminated it. Pass another bill. At least make your argument valid and tell the truth. Don't sugar coat it with untruths. If you want to attack it for not saving it cool, but don't have it eliminates it. I have to repeat. If this BILL does not pass the low-income credits ARE still going to EXPIRE. How can a bill that doesn't pass eliminate something?